Quick take: Magni-Tech shares up 8% on earnings beat


KUALA LUMPUR: Magni-Tech Industries Bhd’s shares rose to its highest in three months in early trading on Tuesday after reporting a 50% jump in net profit in the third quarter ended Jan 31.

The garment maker rose 8.12%, or 19 sen to RM2.53 with 1.11 million shares done. It is currently trading at a PE ratio of 8.26 times.

Magni-Tech’s net profit in the three-month ended Jan 31 jumped 50% to RM48.9mil, or 11.3 sen a share on revenue of RM368mil.

It has declared an interim dividend of 4.5 sen a share.

For the nine months under review, net profit rose 3.8% year-on-year to RM96.5mil while revenue dropped 1.4% year-on-year to RM928.9mil, mainly due to the negative impact of the Covid-19 pandemic.

PublicInvest Research said Magni-Tech’s cumulative 9MFY21 core net profit of RM92.6mil were above expectations, accounting for 81% of its full-year estimates.

“We adjust our earnings estimates upwards by 3-6% to account for the robust sportswear demand, driven by the revival in major sporting events and the rising health awareness leading to a more active lifestyle.

“As such, our SOP-based target price is subsequently raised to RM2.88 (previously RM2.80),” it said.

The research house said its target price implied a potential upside of 23.1%.

Hence, it upgraded Magni to outperform. In addition, Magni declared a 4.5sen dividend, bringing the YTD dividend declared to 8.3sen.

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 46
Cxense type: free
User access status: 3

Magni-Tech , Magni

   

Next In Business News

Censof stages turnaround with RM26.8m net profit in FY21
Carlsberg Malaysia posts Q1 net profit of RM66.46mil
Zafrul: Keeping economy open crucial to avert unemployment
Petronas to boost digital transformation
FBM KLCI up 7.86 points to end at intraday high
GDB 1Q net profit up nearly 54% to RM8.8m
MARC affirms rating on Sinar Kamiri RM245m green sukuk
MEF: Stricter MCO in Selangor crucial but don’t impose full lockdown
Grab Malaysia introduces programme to assist small food businesses
Gold extends rally as weak dollar, inflation jitters lift appeal

Stories You'll Enjoy


Vouchers